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Economics Year 8, Economics & Business - Coggle Diagram

- - - - Traditional economies are systems which base economic decisions on the customs and beliefs of the people
        
        People will make what they have always made and do what their parents did.
      - Ex. Bhutan
      - Most of the population in a traditional economy are self-sufficient and can produce enough food for themselves
        
        Any exchange of goods and services are done through barter
    - - In command economies, the government makes all the economic decisions and owns most of the property
        
        The government planning groups will determine things such as the prices or goods/services and the wages or workers
      - Ex. North Korea and Cuba are the closest to having a true command economy
      - There are no true Market or Command economies
        
        The economies are mixed instead
      - Countries with communist governments have command economies
    - - Market economies are systems which production and distribution questions are answered by prices and profits (supply and demand)
        
        Most resources are owned by individuals or private citizens
      - Ex. Hong Kong is the closest to having a true market economy
      - Economic decisions are based on free enterprise (competition between companies)
    - - A mix of command and market economies make up mixed economies
      - Ex. Australia
- - - - Land is made up of all natural resources
      - Ex. water, coal, natural gas
    - - An idea or thought behind or that runs a business is the enterprise
      - Ex. an idea
    - - Labour includes any workers or employees that work for a company
      - Ex. manager
    - - Ex. utensils, ovens
      - Capital resources are resources that are man-made that are used to help produce
  - - - What resources are used to produce the goods and services
    - - Who gets to have the goods and services
    - - What kinds of goods and services should be produced
      - Ex.
  - - - Producers make or sell goods and services to consumers
      - Ex.
      - They must consider the 3 fundamental questions and the factors of production
    - - Needs & Wants
        
        Needs
        
        Needs are necessary for survival
        
        Basic needs:
        
        Ex. food, water, shelter
        
        Other needs
        
        Ex. school supplies
        
        Wants
        
        Wants are things that people would like to have but don't need
        
        Ex. Air pods, the best phone
      - Consumers are the people who buy goods and services from producers
  - - - payment of wages and salaries
      - purchase of goods and services
      - businesses
        
        taxes
        
        government
        
        government spending
        
        welfare & other services
      - households
        
        savings
        
        financial intermediaries
        
        investment
        
        credit
        
        banks
        
        credit cards
        
        taxes
        
        Imports
        
        Overseas consumers and businesses
        
        Exports
  - - - Supply is the amount of a product that is available to be bought from producers
      - Supply might be low because of scarcity
    - - Demand is the amount of a product that is wanted by consumers
  - - - The business is owned by 2-20 people
        
        The owners share capital, work and decision making as well as profit and debt
    - - Corporations are owned by many shareholders
      - The amount of influence shareholders have on decisions is based on how many shares they have
      - Shareholders elect directors to run the company for them
      - Corporations have the same legal rights as a person
        
        They can be sued, sue others and incur debt on its own name
    - - One person owns and runs the business
        
        The owner is responsible for profits but also debts and may have to sell assets to pay it back
      - There can be employees, but no more than 15
    - - Franchises are business relationships where a parent company gives permission to individuals to promote and sell the business's products
        
        The franchisee has to pay an ongoing fee to the franchiser for the right to use its name